Sainsbury’s Preston sold for £54.4 million

Preston supermarket sold to REIT following completion of asset management strategy

 

Following the successful conclusion of its asset management strategy for the site, LGIM Real Assets has completed on the off market sale of Sainsbury’s, Preston for £54.4 million, reflecting a NIY of 5.1 per cent.

Located on Flintoff Way in Preston, the 106,500 sq ft Sainsbury’s has been sold to Supermarket Income REIT with an unexpired lease term of 22 years with annual, upward only, RPI-lined rent reviews. The property generates a passing rent of £2,963,046 pa. 

“High quality, long let, RPI supermarkets are becoming rare, so this opportunity presented a unique situation.  Despite the well-publicised growth of the discount food operators, retail investments occupied by the traditional ‘Big 4’ supermarket chains still command a high level of investor interest" said Tom Edson, a Director in Retail Capital Markets at Colliers International.

Originally developed in 1992, and extensively refurbished in 2010, Sainsbury's has a long history of trading from this prominent 10-acre site adjacent to Preston town centre. The supermarket comprises 105,601 sq ft of trading floorspace with a 12-pump petrol filling station, 520 parking spaces and purpose-built online fulfilment distribution docks, supporting Sainsbury's online grocery business across the region.

Mark Russell, Senior Fund Manager, LGIM Real Assets, added: “Following the successful conclusion of our asset management plan for this property, we are pleased to have completed this sale. The disposal also forms an important part of our overall strategy for the Managed Fund where we are reducing our exposure to retail.”

Colliers advised LGIM in the sale. 


Related Experts

Tom Edson

Head of Retail Capital Markets

London - West End

Specalist investment advisor on retail warehouse and foodstore investment sale and acquisitions.

 

View expert

Charlotte Williams

Director of PR & Communications| UK & EMEA

London - West End

As Director of PR & Communications in the UK and EMEA I am responsible for:
• Developing and executing internal and external communications strategy for the UK and EMEA business.
• Developing and implementing tactical communications plans to build the brand and promote key messages across all media - print, broadcast and social
• Advising senior management on communications reputation management and developing a media engagement programme that supports key business lines.
• Media evaluation and reporting objectives, targets and successes across the business.
• Delivering strategic communications programmes for all our M&A activity

Managment:

  • Manage the UK in-house PR teams
  • Provide strategic direction to the PR teams acorss EMEA
  • For a year (2013/2014) I was Acting Head of EMEA Marketing & Communications (maternity leave cover)
  • I am a member of the EMEA Marketing Leadership and Global PR & Social teams
  • I lead the EMEA PR Leadership team
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